National Consumer Commission: Composition and Jurisdiction under the Consumer Protection Act 2019
The National Consumer Disputes Redressal Commission, commonly known as the National Commission or NCDRC, is the national-level consumer disputes redressal commission established under the Consumer Protection Act, 2019. This article explains its establishment, composition, qualifications of its President and members, and its present jurisdiction.
What is the National Consumer Disputes Redressal Commission?
The National Consumer Disputes Redressal Commission is the apex consumer disputes redressal commission constituted under the Consumer Protection Act, 2019. It hears consumer complaints falling within its original jurisdiction, appeals from State Commissions and certain appeals from the Central Consumer Protection Authority. It also exercises revisional jurisdiction over State Commissions in circumstances specified by the Act.
Section 53 - Establishment of the National Commission
Section 53 of the Consumer Protection Act, 2019 provides for the establishment of the National Consumer Disputes Redressal Commission by the Central Government.
The National Commission ordinarily functions at the National Capital Region, although the Central Government may notify other places where it may perform its functions.
Section 54 - Composition of the National Commission
Section 54 deals with the composition of the National Commission. The Commission consists of:
- a President; and
- not less than four and not more than such number of members as may be prescribed.
The Central Government may prescribe the number of members of the National Commission in accordance with the Consumer Protection Act and the applicable rules.
Section 55 - Qualifications and Service Conditions
Section 55 authorises the Central Government to make rules concerning the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the President and members of the National Commission.
For appointments made after commencement of the Tribunal Reforms Act, 2021, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other service conditions are governed by the applicable provisions of that legislation.
Section 58 - Jurisdiction of the National Commission
Section 58 of the Consumer Protection Act, 2019 defines the jurisdiction of the National Commission. Its jurisdiction includes original consumer complaints, complaints relating to unfair contracts, appellate jurisdiction and revisional jurisdiction.
1. Original Pecuniary Jurisdiction
Section 58(1)(a)(i) originally provides for complaints based on the value of goods or services paid as consideration and also empowers the Central Government to prescribe another value.
Under the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021, the National Commission has jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds Rs. 2 crore.
Current Pecuniary Jurisdiction of Consumer Commissions
| Consumer Commission | Value of Goods or Services Paid as Consideration |
|---|---|
| District Commission | Up to Rs. 50 lakh |
| State Commission | Above Rs. 50 lakh and up to Rs. 2 crore |
| National Commission | Above Rs. 2 crore |
2. Complaints Relating to Unfair Contracts
Section 58 also confers jurisdiction on the National Commission in relation to complaints against unfair contracts falling within the monetary limits specified by the Act.
An "unfair contract" is defined under Section 2(46) of the Consumer Protection Act, 2019. Broadly, it means a contract between a manufacturer, trader or service provider and a consumer containing terms that cause a significant change in the consumer's rights, including specified forms of unreasonable contractual conditions.
3. Appeals from State Commissions
The National Commission has appellate jurisdiction over orders passed by State Consumer Disputes Redressal Commissions in accordance with the Consumer Protection Act, 2019.
4. Appeals from the Central Consumer Protection Authority
Section 58 also gives the National Commission jurisdiction to hear appeals against orders of the Central Consumer Protection Authority as provided by the Act.
5. Revisional Jurisdiction over State Commissions
The National Commission may call for the records and pass appropriate orders in a consumer dispute pending before or decided by a State Commission where it appears that the State Commission:
- exercised jurisdiction not vested in it by law;
- failed to exercise jurisdiction vested in it by law; or
- acted illegally or with material irregularity while exercising its jurisdiction.
This is generally described as the revisional jurisdiction of the National Commission.
Difference Between the 1986 Act and the Current Law
Under the repealed Consumer Protection Act, 1986, Section 20 governed the composition of the National Commission and Section 21 governed its jurisdiction. The earlier law used a different monetary structure and, at one stage, gave the National Commission jurisdiction over complaints where the value of goods or services and compensation claimed exceeded Rs. 1 crore.
Those provisions should not be used for determining the jurisdiction of a new consumer complaint under the current statutory framework. The Consumer Protection Act, 2019 and the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 must be considered for current jurisdiction.
Official Legal Resources
The current Consumer Protection Act, rules, regulations and notifications should be checked from official Government sources before filing proceedings, particularly because jurisdictional limits and procedural requirements may be amended by notification or rules.
India Code - Government of India
Department of Consumer Affairs - Consumer Protection Act and Rules
Frequently Asked Questions
Which section governs the jurisdiction of the National Commission?
Section 58 of the Consumer Protection Act, 2019 principally governs the jurisdiction of the National Consumer Disputes Redressal Commission.
What is the current pecuniary jurisdiction of the National Commission?
Under the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021, the National Commission entertains consumer complaints where the value of goods or services paid as consideration exceeds Rs. 2 crore.
Is jurisdiction determined by compensation claimed?
Under the current law, the applicable pecuniary jurisdiction for ordinary consumer complaints is determined with reference to the value of the goods or services paid as consideration, rather than merely by the amount of compensation claimed.
Can the National Commission hear appeals?
Yes. The National Commission has appellate jurisdiction, including appeals against orders of State Commissions in accordance with the Consumer Protection Act, 2019.
Are Sections 20 and 21 of the Consumer Protection Act, 1986 still applicable?
The Consumer Protection Act, 1986 has been repealed by the Consumer Protection Act, 2019. Sections 20 and 21 of the 1986 Act therefore represent the earlier statutory framework. Current matters must be examined under the Consumer Protection Act, 2019, subject to applicable transitional provisions and the facts of the particular proceeding.
This article provides general legal information. Applicable statutes, rules, notifications and judicial decisions should be checked for the facts of a particular matter.